Oil costs edged as much as their highest in 13 months on Tuesday as provide cuts by main producers and optimism over gasoline demand restoration help vitality markets.
Brent crude futures for April gained 48 cents, or 0.8%, to $61.04 a barrel by 0443 GMT. U.S. West Texas Intermediate crude (WTI) for March was at $58.42 a barrel, up 45 cents, or 0.8%.
Both Brent and WTI are at their highest since January 2020.
Front-month costs for each contracts are up for the seventh session on Tuesday, the longest win streak since January 2019.
Additional provide reductions by prime exporter Saudi Arabia in February and March, on prime of cuts by producers within the Organization of the Petroleum Exporting Countries and their allies, are tightening provides and balancing international markets.
Investors are additionally pinning hopes on oil demand restoration when COVID-19 vaccines take impact. A weak greenback has additionally helped shored up costs of commodities.
“Progress on U.S. stimulus and optimism around the roll-out and effect of vaccines across the remainder of 2021 and a slightly weaker USD help the view (for a recovery) albeit there was mixed news on the impact of the current vaccines formulated on the emerging South African variant,” Stephen Innes, chief international markets strategist at brokerage Axi.
He cautioned, nonetheless, that each Brent and WTI are in overbought territory on technical charts.
“While I remain a bit cautious at current levels, the medium and longer-term outlook for demand is healthy, and one can understand a willingness to look through some of the near-term uncertainty that remains for oil,” he stated.
Investors are waiting for the US weekly oil inventories information due later within the week.
US crude and gasoline stockpiles possible rose final week, whereas distillate shares had been seen down, a preliminary Reuters ballot confirmed on Monday.
